“Creation” and Work Styles Supply Chain Social Responsibility Initiatives

HINO SUSTAINABILITY CONTENTS SEARCH 80 REPORT 2018 Safety Health Quality Human Resources “Creation” and Work Styles Supply Chain Social Responsibility Initiatives Human Resources “Creation” and Work Styles Basic Stance The CSR Charter of the HINO Credo states, “We respect each individual employee, and strive to create a workplace that fosters personal growth.” This expresses Hino Motors’ stance on issues including the processes—done with employees’ full involvement—of “creating” human resources and innovative work styles. Hino Motors recognizes that human resources initiatives support the foundation of the Company. The Company takes an active approach to personnel appointments, human resources development, and work support that suit each individual so that all members of Team Hino can accurately assess changes and address issues from a global perspective. Human Resource Development Initiatives Based on a climate of “teach and be taught,” Hino Motors advocates a basic policy of human resource development that boosts work capabilities through on-the-job training (OJT). With the goal of complementing OJT, diverse group training (off-the-job training) is also carried out, such as hierarchal training and education in specialized fields, and self-development pursued by employees outside of work hours is also supported. To develop employees capable of working on the global stage, a particular focus is placed on practical programs that include language classes/overseas trainee programs (sending young employees to overseas training), training to increase management skills for employees holding management positions, employee training to gain specialized knowledge/skills, and training to improve problem-solving skills. ● Major Skills Development and Human Resource Development Systems Professional human resource development Management and highly specialized phase(For business operators) staff development phase(For managers) New recruit Training for managers, according to Training for middle-level positions, according to position training position Administrative (148) (394) (256) and R&D Company-Wide shared elective courses(covering environment, financial affairs, legal affairs and labor issues) positions Preparatory training for personal appointed overseas(covering languages and cross-cultural communication skills) Self-learning(Languages and support for certification) In-house Skills Accreditation System for supporting on-the-job training of all employees New recruit Specialized training on the Toyota Training for newly Training for Training for newly 1 newly appointed appointed senior training Production System(TPS)* appointed instructors supervisors supervisors (406) （15） (118) (52) (23) Skilled technical Training courses on quality Training for QC 2 Training course for QC managers position control(QC)* methods instructors (243) (118) (193) TPS practice Training course Employee recruitment program TWI training course*3 course for TPS managers (48) (118) (52) (23) Figures in parentheses are the number of course participants in fiscal 2017. *1 TPS: “Toyota Production System,” the Toyota method of production. *2 QC: Quality control *3 TWI: “Training within Industry”; TWI is a training technique for improving leadership and managerial skills. HINO SUSTAINABILITY REPORT 2018 HINO SUSTAINABILITY CONTENTS SEARCH 81 REPORT 2018 Safety Health Quality Human Resources “Creation” and Work Styles Supply Chain Social Responsibility Initiatives ♦ In-House Skills Accreditation System and Company-wide Capabilities and Competencies Exchange Hino Motors has established an in-house skills accreditation system for organizing its on-the-job training activities at production sites and other workplaces requiring technical skills. Through this system, the expertise and skills needed in each workplace are clearly specified and incorporated into the goals of technical skills training programs, general training, and daily operations so that they can be systematically acquired by employees. As part of the in-house skills accreditation system, Hino Motors holds its Company-wide Capabilities and Competencies Exchange every year. The event provides opportunities for representatives from all workplaces and group companies, including overseas businesses, to demonstrate the skills they have refined on a regular basis in order to engage in friendly competition and mutually improve their capabilities through interaction. By bringing members of all workplaces together for interactive activities, the event serves to motivate employees and foster a corporate culture that values reciprocal learning, which is essential for passing down technical skills to the next generation. Quality control vehicle Maintenance (centering) Painting ♦ Hino Technical Skills Academy With the hope of developing authentic artisans who are passionate about creating excellent products, Hino Motors originally established the Hino Technical Skills Academy in 1951 as its own vocational school for training engineers. With this same desire, the academy now serves as a training center for developing and preparing human resources with the character and skills they need to take leading positions in the Company’s production plants. The Hino Technical Skills Academy implements three-year courses in the subject areas of machining, plastic forming, automotive manufacturing, and manufacturing facilities. Employees acquire specialized knowledge and skills in their course of study and upon graduation are appointed to work in various fields at Hino Motors. While the academy focuses on human resources who work on the production floor, which is a pillar of the company’s manufacturing operations, it also trains Field Service Engineers (FSE) who share their service engineering knowledge around the world to support the business of customers. (More information about FSE is available in page 24.) In order to expand its human resources development, the Company has expanded the academy class to 40 employees in fiscal 2017 and 60 employees in fiscal 2018. Through the development of human resources who can be active in various fields, the academy is contributing to the sustainable growth of Hino Motors. Class at the Hino Technical Skills Academy Recreational activities HINO SUSTAINABILITY REPORT 2018 HINO SUSTAINABILITY CONTENTS SEARCH 82 REPORT 2018 Safety Health Quality Human Resources “Creation” and Work Styles Supply Chain Social Responsibility Initiatives Initiatives for Promoting Diversity Hino Motors understands that developing and making the most of the capabilities of its diverse employees is vital if the Company is to continue providing high-value-added products and services that benefit society. For that reason, Hino Motors regards the creation of a dynamic corporate culture that values the diversity of its members as an important task for management, and it pursues initiatives to promote diversity on that basis. The Company has appointed staff in charge of promoting diversity in its human resources departments and makes proactive efforts to ensure that capable employees are promoted irrespective of their gender or nationality. ♦ Appointment of Non-Japanese Director Hino Motors recognizes that it is critical to draw on global resources in order to keep pace with the rapid changes occurring in society. In April 2018, the Company revised its system of directors, appointing its first non-Japanese director. Hino Motors will continue to deploy diverse human resources, always aiming to put the right person in the right position. In so doing, Team Hino will continue to support the business of its customers across the globe and remain a positive force in society. ♦ Supporting the Success of Women To help women attain greater success in their careers, Hino Motors has set the goal of tripling the number of women in management positionsrs by 2020 from the current level of 19 (as of November 2014). The number of women in management positions is steadily increasing. As of April 2018, there were 36 women working in key positions. To realize the goal, the Company will continue and expand its efforts to improve childcare support. The focus will also be placed on the following efforts. 1. Increasing the percentage of women in new graduate and year-round recruitment, and expanding the appointment of women in management positions based on gender composition by year 2. Creating a workplace that is easy for anyone to work in, such as by introducing flexible working systems 3. Improving the workplace environment so that employees can work while raising children, such as the establishment of in-house nursery schools In 2015, opportunities for attaining success were further expanded with the appointment of a woman as president of a subsidiary in Canada. ♦ Employing People with Disabilities Hino Motors proactively hires people with disabilities and provides support so they can thrive. In December 2007, the Company established a special subsidiary, Hino Harmony, Ltd., for the purpose of promoting the hiring of people with disabilities. Its business activities continue to grow each year, further increasing new opportunities for people with disabilities. It is actively making the workplace comfortable for people with disabilities to work in through a variety of measures, including setting up a special paid vacation system to allow the employees to take time off for health management and skills development purposes, and providing designated parking spaces at worksites to facilitate easier access. The fiscal 2017 employment rate for persons

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